KfW-Ipex has extended a €170mn export finance loan to Bhushan, an Indian steel manufacturer.

The loan will be used to purchase pollution-reducing technology from midcap exporters in Germany, Italy and Luxembourg. It is guaranteed by the export credit agencies of each respective country.

Bhusan’s Phase VI expansion project will see a new state-of-the-art blast furnace installed at its power and steel plant, which will reduce emissions, production costs and reliance on energy. It’s earmarked for completion in H2 2017 and will allow the company to increase its current raw steel capacity of 2.4 million tonnes a year by 1.1 million tonnes, annually.

KfW-Ipex director Markus Scheer says: “In this project we are financing in particular exports of German top-end technology produced by medium-size companies, but also supplies from other European manufacturers. Bhushan Power and Steel is a long-time valued business partner of KfW-Ipex, and we work together in confidence with the company on the financing of its projects.”